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I think you have to draw the line somewhere.
If you miss the deadline, you pay the consequences according to the terms of the contract that you agreed to and signed for!
Brilliant! Thank you for this. I appreciate the time you have taken to explain this to me. It all makes sense now.
Cheers!
v8ghia wrote:Welcome to the forum Hilly. Your loan cannot be unconditionally approved (formally approved) until you actually have a property, and of course you cannot have a property until you have signed a contract – otherwise it cannot proceed. Depending on the lender, unless you have an issue with the property valuation, this is no drama at all. Most mainstream lenders will view the contract of sale as the purchase price, and advance you funds based on that – although for high loan to value borrowings (ie, 95-100% of the purchase price) will usually get a 'valuation' done as well.
Essentially what your lender is saying is, " you are ok, we are happy with your ability to make payments, and we are going to give you money for the property…………..when you find one and decide to buy it…" (as long as we are happy it is worth what you are paying for it)
All the best.Great thanks!
Thanks for your feedback.
OK so if I sign a 'conditional' contract of sale, is this the actual document I would send to my lender, as well as the OSR to claim the FHOG providing the valuation and inspections come back satisfactory?
Reason why I need to clarify this as it is my understanding the contract of sale needs to be officially modified ready for signing and exchange, which of course I wont be exchanging until I obtain formal approval. Or is the conditional agreement a different document altogether?
Sorry if this question sounds dumb as I just want to go in their with the whole process mapped in my head, and knowing exactly what contract copy I am sending to the relavant parties etc…
Cheers
